I mostly agree.
> A literal pile of cash would not count a single cent towards that requirement.
Are you sure about that? Do you have a source?
As far as I am aware, vault cash is fine, just way less convenient than an account at the Fed.
But I admit that I don't know the exact rules, and would be happy to be proven wrong.
> Modern requirements are based on core capital ratio [...]
I think you can strike the word 'modern' from that sentence. Capital cushions have been a thing for a long, long time. What's 'modern' is that the US mostly stopped having reserve requirements (though the new rules are written in such a way as to all-but force American banks to hold lots of American government debt as a sort-of reserve in disguise).